ASML’s Cymer Move Makes Sense

By

Robert Van den Oever

Oct 17, 2012 2:15 pm GMT

ASML’s decision to bid for Cymer is based on the belief that acquiring a company that makes the next generation of microchips for use in tablet computers and smartphones will be more cost effective than investing heavily in its own research and development facilities.

The Dutch chip manufacturing equipment maker wants to safeguard delivery of its new extreme ultra violet (EUV) technology-based machines in 2014. This new technology can etch higher-dense transistor patterns on silicon wafers, the basis for microchips, which enables the production of more powerful chips.

The development of this cutting edge technology will confirm ASML as the dominant player in the field with a market share above 80%.

It is a crucial step for ASML. The company cannot afford to lag behind in the race towards ever moving industry standards.